Losing streaks and drawdown

Drawdown is how far your account has fallen from its highest point. It is the true measure of pain in trading — and the thing that most often pushes traders into breaking their plans.

Losing streaks are inevitable

Even at a 50% win rate, the probability of five consecutive losses is real and it happens. Someone hitting 40% will see longer streaks. This is not a sign that your plan has failed — it is the natural distribution of a series of probabilities.